China should be global nexus for chemical industry sustainability, says SABIC CEO

China should be global nexus for chemical industry sustainability, says SABIC CEO
SABIC CEO Abdulrahman Al-Fageeh made the comments during the Boao Forum for Asia Conference, an annual international conference that SABIC is sponsoring for the 15th time - the last four of which as an honorary strategic partner (File)
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Updated 31 March 2023

China should be global nexus for chemical industry sustainability, says SABIC CEO

China should be global nexus for chemical industry sustainability, says SABIC CEO

RIYADH: China should be at the center of global collaboration efforts to boost sustainable economic growth in the chemicals industry, the head of Saudi Basic Industries Corp. has insisted.

Speaking during the Boao Forum for Asia Conference, SABIC CEO Abdulrahman Al-Fageeh said the economic powerhouse was perfectly placed to help foster closer working between countries and companies in the sector.

He called on the international community to strengthen cross-regional and cross-sector collaboration to deliver growth that fit in with the global push for environmentally-friendly policies..

 Following Chinese Premier Li Qiang’s keynote speech at the event’s opening plenary, Al-Fageeh spoke as a representative of the international business community and said: “For sustainable economic growth to flourish globally, close international collaboration will be required – not only between companies but also between countries linked by value chains. 

“Being the world’s largest market for chemical products, China is the obvious place to establish a nexus of global sustainable economic growth. 

“As SABIC expands its local presence, it will focus on investing in the development of technology.

“Innovation-driven economic growth can spread widely under the strategic alignment between Saudi Arabia’s Vision 2030 and China’s Belt and Road Initiative.”

In addition to his comments at the opening ceremony, Al-Fageeh also participated in a panel discussion on ‘Carbon Neutrality: Dilemma and Way Out’ with representatives from financial institutions, businesses, and government organizations. 

During the discussion, the CEO underlined the importance of collaboration across the value chain in the quest for global carbon neutrality. 

He also noted that companies should be focusing on the long-term economic value of their carbon-reduction-related projects to ensure that they are sustainable.

SABIC’s used its exhibition booth at the Forum to showcase its solutions to accelerate the circular carbon economy, increase energy efficiency, and help customers mitigate their environmental footprint.

Relations between China and Saudi Arabia have been growing in recent years, and in December 2022 President Xi Jinping made a three-day state visit to the Kingdom.

Xi and his delegation held talks with Saudi Arabia’s King Salman, Crown Prince Mohammed bin Salman, and the heads of key ministries, resulting in 35 memorandums of understanding and deals worth $30 billion.


Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31
Updated 08 June 2023

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

RIYADH: Saudi Arabia’s M3 money supply has surged 4.71 percent since December 2022, according to data released by the Saudi Central Bank, also known as SAMA.

The M3 money supply — the broadest measure of liquidity in the monetary system — reached SR2.61 billion ($697 billion) in the week ending June 1, up from SR2.5 billion on Dec. 31.

However, the money supply for the week ending June 1 dropped 0.29 percent compared to $2.62 billion in the week ending June 25.

The SAMA data also showed that the money supply has been stable at SR2.6 billion in the past six weeks.  

Central banks use M3 money supply figures to direct monetary policy, thereby controlling inflation, consumption, growth, and liquidity over medium- and long-term periods.

Meanwhile, the M2 money supply recorded a 4.53 rise compared to Dec. 31 and a 0.57 percent weekly increase. 

The M2 poses a measurement of the nation’s money supply that estimates all the cash individuals have in hand or short-term bank deposits. It is usually used to indicate possible increases or decreases in inflation levels.

As for the M1 money supply during the week ending June 1, it jumped 1.45 percent from the end of December 2022 and 1.52 percent against the preceding week.

The M1 money supply comprises currency, demand and other liquid deposits.

It contains currency and assets that can be quickly converted to cash.


Closing bell: Saudi bourses end the week in green

Closing bell: Saudi bourses end the week in green
Updated 08 June 2023

Closing bell: Saudi bourses end the week in green

Closing bell: Saudi bourses end the week in green

After rising for four consecutive days, Saudi Arabia’s Tadawul All Share Index ended the week in green, as it gained 24.31 points, or 0.21 percent, to close at 11,397.14.

The total trading turnover of the benchmark index hit SR7.14 billion ($1.90 billion), as 113 stocks advanced, while 94 retracted. 

While parallel market Nomu gained 368.10 points to close at 21,849.68, MSCI Tadawul Index increased 0.16 percent to end the day at 1,509.41.

The top-performing stock on Thursday was Arabian Contracting Services Co., whose share price went up 7.5 percent to SR154.80. 

Etihad Atheeb Telecommunication Co. and Astra Industrial Group were top performers, whose share prices soared by 5.63 percent and 5.18 percent, respectively.

The worst performer of the day was Leejam Sports Co., whose share price dipped by 4.2 percent. 

On the announcements front, Saudi Arabian Mining Co. said its shareholders approved the board’s recommendation to increase capital by 50 percent through a bonus share distribution.

According to a Tadawul statement, the mining giant will distribute one share for every two shares held, thus capitalizing SR12.31 billion from the statutory reserve and retained earnings. The company’s share price went down by 0.69 percent to SR43.85. 

Meanwhile, National Medical Care Co., also known as Care, announced that it had signed a share purchase agreement to acquire the entire share capital of Jiwar Medical Services Co. 

In a statement to Tadawul, Care noted that the acquisition deal was made after obtaining all approvals from competent authorities. The company’s share price dropped by 2.36 percent to SR116.


Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 
Updated 08 June 2023

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

RIYADH: A new business visa for investors has been announced by Saudi Arabia as part of the Kingdom’s drive to attract foreign funding into the economy. 

The “visiting investor” visa is being launched by Saudi Arabia’s Ministry of Investment, which worked closely with the Kingdom’s Foreign Affairs department to develop the new permit. 

Saudi Arabia has demonstrated a keen interest in streamlining the process for investors and international companies looking to expand their portfolios within the Kingdom, as part of the Vision 2030 initiative to diversify the economy away from oil. 

“The launch of the visiting investor business visa service comes within the framework of the success of cooperation and integration of efforts between the Ministries of Foreign Affairs and Investment,” Khalid Al-Falih, minister of investment, said in a tweet.  

He further noted that the Ministry of Foreign Affairs backs the efforts of the Ministry of Investment in simplifying the process for investors interested in discovering business opportunities in the Kingdom.  

“I thank His Highness the Minister and the brothers in the Ministry of Foreign Affairs for supporting the efforts of the Ministry of Investment to facilitate the journey of the investor wishing to learn about the environment and investment opportunities in the Kingdom,” Al-Falih added.  

Foreign investments in Saudi Arabia rose by 2 percent in 2022 to SR2.4 trillion ($640 billion), up from SR2.36 trillion in 2021, according to the Saudi Central Bank, also known as SAMA.  

SAMA’s report indicated that foreign direct investments constituted 42 percent of the total inflow of international funds into the Kingdom, amounting to SR1.01 trillion.  

In March, Al-Falih indicated that multinational companies moving their headquarters to Saudi Arabia in 2023 to secure government contracts might be eligible for tax exemptions.  

The Kingdom’s industrial sector is among several witnessing a significant influx of foreign investments, which comprise 37 percent of the industry’s total funding. 


Saudi Electricity Co. invests $373m in 3 projects to boost power grid

Saudi Electricity Co. invests $373m in 3 projects to boost power grid
Updated 08 June 2023

Saudi Electricity Co. invests $373m in 3 projects to boost power grid

Saudi Electricity Co. invests $373m in 3 projects to boost power grid

RIYADH: Electricity networks across three Saudi governates are set to undergo SR1.4 billion ($373 million) worth of improvements to reduce the areas’ liquid fuel consumption and carbon emissions.

State-owned Saudi Electricity Co. will invest the money across Rafha, Al-Wajh and Najran, reported the Saudi Press Agency. 

Ensuring reliability and continuity, the company aims to maximize electric power generation units for network efficiency and subscribers’ benefits.

The first scheme will link Rafha to the public electricity network in the eastern sector via a 380 kilovolt overhead line spanning 328 km. 

Connecting Al-Qasima to Rafha, the line will have a capacity of 1,650 kilovolt-amps.

Secondly, the Al-Wajh governorate will be connected to the Green Duba power station through an overhead line spanning 210 km. 

This link will strategically connect the northwest network to the western region network.

The SEC added that the third scheme would join the Najran region with the Al Fara’a station in the Asir region with an overhead line reaching 236.5 km.

The third scheme will also secure additional energy as the electrical networks in the southern and Najran regions become more reliable. 

In March, the company announced plans to allocate between SR30 billion and SR35 billion for its 2023 capital expenditure. 

This outlay is at least 10 percent higher than the electric power distribution firm’s 2022 capital expenditure, which stood at SR27.4 billion. 

Even though SEC did not provide a clear breakdown of the allocated amount, it is projected that expenditure in transmission and distribution infrastructure will be a priority considering that this dominated the firm’s capital expenditure over the past three years. 

In addition, SEC shed light on plans to further develop its distribution and transmission lines, and potentially achieve 23 percent automation within its distribution grid.

Established in 2000, SEC has monopolized the generation, transmission and distribution of electric power in the Kingdom through 45 power generation plants in the country. 

The firm’s vision revolves around integrating the environment, economy and social issues into the firm’s corporate cultural and economic values to accomplish the greater objectives of sustainable development.


Aramco, Eni, United Airlines invest $22.7m in UK’s low-carbon startup

Aramco, Eni, United Airlines invest $22.7m in UK’s low-carbon startup
Updated 08 June 2023

Aramco, Eni, United Airlines invest $22.7m in UK’s low-carbon startup

Aramco, Eni, United Airlines invest $22.7m in UK’s low-carbon startup

RIYADH: The aviation industry’s efforts to develop low-carbon fuel at affordable cost received a boost after a deal was struck to invest $22.7 million into a UK startup working in clean energy technology. 

The venture units of oil firms Saudi Arabian Oil Co. and Italy’s Eni have partnered with United Airlines to invest the amount into OXCCU, a company spun out from the University of Oxford.

Led by US-based investor Clean Energy Ventures, the investment will be used to facilitate OXCCU's efforts in slashing the high cost of low-carbon aviation fuel, according to a statement.

OXCCU is known to make fuel by combining carbon dioxide captured from industry or power plants with hydrogen made using renewably sourced electricity.

This process is achieved by using an iron-based catalyst to carry this in one step, thereby replacing the costly two-stage process usually required for the chemical reaction.

According to the statement, streamlining the process this way knocks as much as 50 percent off the capital cost and produces fewer byproducts.

“Sustainable aviation fuel is the best tool we have to decarbonize air travel, but we continue to face a significant supply shortage,” United Airlines Ventures President Michael Leskinen said.

He went on to explain that the technology developed by OXCCU could resolve the supply problem by using CO2 as a feedstock to produce fuel.

“This cutting-edge solution could be a cost-effective pathway for United to reach our commitment of net-zero carbon emissions by 2050, without relying on traditional carbon offsets,” Leskinen stressed.

Based on the evaluation of dozens of technologies, Clean Energy Venture found OXCCU’s process unique in the emerging sustainable aviation fuel industry.

“We see extraordinary potential for this technology to mitigate new aviation fuel production emissions at gigaton-scale in the near future, and we are pleased to lead an extraordinary consortium of industry leaders to support the company in its commercialization and deployment,” said Daniel Goldman, co-founder and managing partner of Clean Energy Ventures.

Speaking at an aviation forum last month, Saudi Arabia’s energy minister said that low-carbon fuel could help the aviation sector transition to greener forms of energy.

Prince Abdulaziz bin Salman who made the remarks at the Future Aviation Forum in Riyadh, highlighted the importance of going green and sustainability to the sector.

The minister noted that achieving sustainability cannot be achieved by relying on biofuels, and all options — including hydrogen — should be considered to ensure a better low-carbon future.